At the End of the First Year of Operations, the Statement

question 31

Multiple Choice

At the end of the first year of operations, the statement of financial position of Midwood Medical Supply showed the following: Accounts Receivable, $5,000; Accounts Payable, $6,000; Inventory, $3,000; and Unexpired Insurance, $2,000. The corporation reported profit of $79,000 for the year, including depreciation expense of $5,000, and uses the indirect method of computing net cash from operating activities. Solely on the basis of this information, net cash from operating activities is:

• A) $78,000.
• B) $82,000.
• C) $77,000.
• D) $80,000.

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Definitions:

Testing Effect

The experimental finding that taking tests on material actually improves the learning of it even when compared with simply repeatedly studying that material.

Roediger

Refers to Henry L. Roediger III, an influential cognitive psychologist known for his research on memory, particularly the testing effect and false memories.

Cue Overload

A principle of memory that states a retrieval cue will be most effective when it is highly distinctive and not related to any other target memories.

Distinctive

Having a quality or characteristic that makes something easily identifiable and sets it apart from others.